Aimee Joans: Is renting a home a good idea?
Hey everyone 🙂 I need advice from anyone who has rented, rents or knows anyone who rents a home!
My dream since I was about 15 years old has been to buy my own home. I am 23 and I’ve worked since I was 18 years old. My fiance and I (We’ve been together for 4 years) are desperately trying to save for a home of our own. We have $ 25,000 saved and by April next year we will have over $ 30,000 in savings. We have no debt, we own our car and both work full-time at good companies. We hope to make more money in the future. We currently bring in (after taxes) 3,082.36 a month).
We don’t make enough to buy a home right now. We know that. We have savings as a nice comfort and security for us. We currently live with my parents, but we are ready to grown up. My parents are very “in your face” and it gets on my nerves because I am 23 and my Dad has always told me to live at home until I buy a home, but I can’t wait anymore. I just want to make my own decisions and have some privacy and make some of my own rules. I am ready for the independence (we have moved out on our own before we lived in my brothers house and rented from him)
Anyway, I do not like apartments and the area where I want to live has none anyway. We live in the country and I want to stay there! There is a town close by which is my dream town with everything I love in it! I am thinking of looking into renting a home but I don’t know if that would just mean throwing my money away for no reason? Is it a good idea? What things are you generally obligated to pay when signing a rent lease for a home? Is it cheaper than having your own mortgage and bills?
Please give me some honest advice! I don’t want to burn through my savings, I still want to keep them secure for our future. I just wonder if it’s possible for my fiance and I to afford to rent a town home and if it would be a good idea?
Answers and Views:
Answer by Jorvon Carter
Yes, it’s better than living with your parents though not as good as owning a home. Since the the two of you are making only 36k a year, make sure the rent is pretty damn low.
Where do you live? I’m guessing it’s a very high priced city if you can’t afford to purchase with your income and savings. Before taxes, you two are making about $ 55-60K I’m guessing?? And with no debt and assuming you have good credit, you could definitely afford a nice house in Atlanta. How much in rent are you able to pay and be comfortable?
I would think around $ 1000 per month would be a good payment for you but it depends on what other expenses you may have. For that much, you could afford a home around $ 150,000. What are the home prices like in the town you want to live in? I think this is one of the best times in history (and in most of our lifetimes) to buy a house because mortgage rates are at record lows as are home prices. In many places right now, rents are more than the price of a mortgage for the same house.
I’d suggest talking to a realtor and a lender first to see what you might qualify for before ruling out purchasing. If that is your dream, go for it! If you and your fiance are handy, you might look at foreclosures or short sales that may need a little work but are priced under market. Many homes just need some new appliances and painting and carpet and would look almost new.
I always think owning and building equity is better than renting and never seeing that money again. Most house rentals require that you pay all the utilities and some even require you do some of the maintenance – very similar to if you owned the house.
Also, you’re so young, so your first house likely won’t be your last house. If you buy a starter home now, you can likely sell it for a profit in 5-10 years when you’re ready to step up to a larger home. Real estate is still one of the best ways to build wealth. Look at it not only as a home but as an investment. Your Realtor can also help recognize homes to invest in. And it costs nothing to hire a realtor if you are the buyer. The seller pays your agent.
Good luck and I hope this helps!!
Leave a Reply